Weekly Audit: A Progressive Deficit Fix?

by Lindsay Beyerstein, Media Consortium blogger

The co-chairs of the 18-member deficit commission issued a preliminary presentation two weeks ago that favored tax breaks for the wealthy and left open the possibility of deep cuts to Social Security, Medicare and other social programs. But there’s still time for the commission to radically reshape its message before it issues its final report.

Jan’s plan

That’s exactly what progressive Rep. Jan Schakowsky (D-IL) is trying to bring about. Schakowsky is a member of the commission and she has an alternative, progressive plan to rein in the deficit, as David Moberg reports for Working in These Times:

It would not go into effect until 2015 or after unemployment subsides, and it provides for $200 billion of job-creating investments during the next two years, in addition to reducing the deficit by $441 billion in 2015, nearly double Obama’s target. Slightly more than a third of Schakowsky’s proposed deficit reduction would come from new revenue (mostly tax changes hitting the wealthy and corporations but also from cap-and-trade carbon emission controls), 30 percent from ending or reforming tax expenditures (again, mainly benefiting rich taxpayers), a quarter from defense cuts, and 9 percent from mandatory programs (like offering a public option for health insurance and requiring Medicare to bargain over drug prices). Though Social Security does not contribute to the deficit, Schakowsky plans to secure future payouts without benefit cuts by increasing how much the wealthy pay into the retirement program.

A public option for health insurance would keep rising health care costs in check because insurers would have to compete with non-profit, government-administered insurance. Instead of cutting Social Security benefits for the needy, Schakowsky would simply eliminate the arbitrary payroll tax ceiling on high earners. Sounds like common sense, doesn’t it?

A coalition of progressive groups calling itself Our Fiscal Security unveiled its own alternative proposal for cutting the deficit on Monday, Luke Johnson reports for the Colorado Independent. Key planks of the platform include repealing the Bush tax cuts, reinstating the estate tax for married couples with assets greater than $4 million, and capping itemized deductions at 15%. Coalition members include Demos, the Century Foundation, and the Economic Policy Foundation.

Generation Recession

Young adults have the highest unemployment rate of any demographic. At the National Radio Project, Rina Palta examines the impact of joblessness on the nation’s 80 million “Millennials.” (Audio) Palta talks to young people who are weathering their first layoffs mere weeks or months after landing their first professional jobs.

Mark Kirk: Tax Cuts for the Rich “No Matter What”

The day before 2.5 million Americans stand to lose their unemployment benefits, Sen. Mark Kirk (R-IL) went on TV to insist that unemployment insurance is misguided and that the government must cut taxes for the rich “no matter what,” Julianne Escobedo Shepherd reports in AlterNet.

Oddly enough, Kirk fancies himself a moderate by Republican standards, according to Steve Benen of the Washington Monthly. Kirk believes that extending unemployment insurance would “just add to the deficit.” In fact, as Benen notes, extending unemployment benefits would be a very efficient way to infuse billions of dollars into the economy. Unemployed people will spend their extended benefits on food, gas, rent, and other necessities. That money doesn’t just disappear into the ether, it feeds local businesses, who in turn keep other Americans working.

The Republican Party line is that the rich need tax cuts because they create jobs. If tax cuts for the rich created jobs, we should already have a full employment economy. As the Bush tax cuts are set to expire, taxes for the rich are at all time lows and unemployment is at historic highs. It is crazy to assume that allowing these tax cuts to continue will magically produce jobs that have yet to materialize, or even bring back the jobs that have disappeared since the Bush tax cuts went into effect.

Ireland’s Billion Dollar Bailout

Over the weekend, the world’s financial institutions agreed to spend $90 billion to bail out Ireland. Tim Fernholz of TAPPED worries that this sum is too small to bring Ireland back from the brink of its sovereign debt crisis. He argues that the world financial community is making the same mistake it made in the 1990s when it forced debtor nations into fiscal austerity without forcing creditor nations to restructure their loans on more sustainable terms.

Once again, bondholders are being spared while Irish taxpayers are being expected to shoulder the heaviest burdens. The economic argument for saving the bondholders is that a bond is an ironclad promise, and that if you start expecting bondholders to accept less than 100% of what was promised to them (no matter how ill-advised they were to take that promise), the entire system will fall apart. It’s ironic that the promises that governments make to their citizens are endlessly renegotiable while bond deals are ironclad. Worldwide, citizens outnumber bondholders. Having citizens lose faith in their government seems far more dangerous than expecting bondholders to take a haircut.

 

This post features links to the best independent, progressive reporting about the economy by members of The Media Consortium. It is free to reprint. Visit the Audit for a complete list of articles on economic issues, or follow us on Twitter. And for the best progressive reporting on critical economy, environment, health care and immigration issues, check out The Mulch, The Pulse and The Diaspora. This is a project of The Media Consortium, a network of leading independent media outlets.

 

 

Why Obama Was Never the Most Liberal Senator in the United States

A common charge of Republicans during the 2008 presidential campaign was at Senator Barack Obama's perceived liberalism. Republicans often stated that Mr. Obama was the most liberal senator in the United States, according to a ranking by the National Journal. The attack against Mr. Obama's liberalism has continued during his time in office.

The ranking by the National Journal, however, seems to be flawed in several ways. Take the 2004 rankings, for instance. Guess who was ranked the most liberal Senator in 2004.

If you answered John Kerry, that's right. The exact same claim was made against Mr. Kerry in 2004, based upon the exact same ranking. And check out how highly their Vice Presidential picks ranked: Senator Joe Biden was ranked the 3rd most liberal senator when he ran for Vice President, and Senator John Edwards was ranked the 4th most liberal senator during his campaign for the spot.

The high ranking of Mr. Edwards is particularly hard to believe. John Edwards, after all, represented North Carolina - certainly not the most liberal of states. He was elected senator with a less-than-five percent margin. Indeed, in the year before 2003 Mr. Edwards was ranked the 31st most liberal senator.

In reality, Mr. Obama and Mr. Kerry were far from the most liberal senators in the United States. The reason they were ranked so is due to the many votes they missed while campaigning for president.

And there are certainly senators who are far more liberal than either Mr. Obama or Mr. Kerry. Take Senator Bernie Sanders of Vermont. Mr. Sanders is not just your typical liberal - he's actually a bona-fide socialist. Republicans often attack Mr. Obama as espousing socialism, attacks which the Obama administration usually responds are ridiculous. But Mr. Sanders actually is a socialist, and a proud one at that.

There are other quite liberal senators out there. It is hard to believe that either Mr. Obama was more liberal than Senator Ted Kennedy of Massachusetts, or Senator Barbara Boxer of California. Then there's recently defeated Senator Russ Feingold of Wisconsin, the only senator to vote against the initial Patriot Act.

There are about a dozen other Democratic senators who also were probably more liberal than Mr. Obama. Some of these are the people who hold the levers of power in the Democratic Party, like Senator Charles Schumer of New York or Senator Dick Durbin of Illinois. Others are lesser-known senators who come from very liberal states, like Senator Jack Reed of Rhode Island or Senator Daniel Akaka of Hawaii.

This is not to say that Mr. Obama was a liberal senator. He was, as a liberal-minded man representing a liberal-minded state. But to believe the conservative claim that Mr. Obama was the most liberal senator would be to believe that he was more to the left than an actual socialist. And, despite what some conservatives might believe, Mr. Obama certainly hasn't imposed socialism upon the United States

--Inoljt, http://mypolitikal.com/

 

 

This Thanksgiving, dream a little dream for youth around the country

From the Restore Fairness blog-

Young people like Noemi Degante and Fredd Reyes deserve the opportunity to contribute to the country they have called home for most of their lives. Instead, they will spend this Thanksgiving under arrest and in detention for demanding a chance to complete college and strive for successful careers and fulfilling lives.

After a long night of studying for an exam at Guilford Technical Community College, Fredd Reyes was rudely awakened by Immigrations and Customs Enforcement (ICE) officials at 5am on a morning in September. He was handcuffed and taken from his home in North Carolina to the Stewart Detention Center in Lumpkin, Georgia, a place that has been the subject of recent critiques and protests for it’s inhumane immigration detention practices.

Fredd, who was brought to the U.S. from Guatemala when his parents were fleeing persecution and death threats, has spent the 22 years that he has lived in this country working hard to be a model student and create the life that his parents envisioned for him. The reasons for Fredd’s detention are the same as those holding back the 2.1 million undocumented young people around the United States who were brought here as children by their parents. For all these young people, the DREAM Act (The Development, Relief and Education for Alien Minors Act) is the only hope for the chance to make the most out of the k-12 education that they have received and follow their aspirations. If passed, the DREAM Act would make undocumented people like Fredd eligible for a green card and a path to citizenship, as long as they came to the U.S. before the age of 16 (and are below the age of 35 when the law is passed), have been in the country for more than 6 years, and once they have completed at least two years of a college degree or military service. The DREAM Act, which will be coming up for a vote in the Senate before the end of the lame duck session, has received bipartisan support a number of times in the past, but has always stopped short of being passed.

Following Senate majority leader Harry Reid’s announcement that he would reintroduce the DREAM Act in Congress after Thanksgiving, DREAM Activists around the country have upped the anti to urge Congress to work together to make sure that it is passed this time around. Two weeks ago a dozen students at the University of Texas in San Antonio began a hunger strike to urge Republican Sen. Kay Bailey Hutchison, who has supported the DREAM Act in the past but refused to vote for it in September, to agree to vote for the bill when it is reintroduced in Congress. This week, another 30 students from University of Texas campuses in Austin, Dallas, Arlington, Brownsville and Edinburg, as well as the University of North Texas in Denton, joined the hunger strike to drive the message home. The strike is being led by DREAM Act NOW, a group that is part of the national coalition called United we DREAM, which brings together DREAM Activists in all the states. Lucy Martinez, who is a second year at UT San Antonio and one of the leaders of strike said that the strike is their last resort since they “have tried everything else. We have done lobbying, legislative visits, marches, sit-ins. We are tired of it.” Martinez likened the hunger strike to “what we go through in our everyday lives — starving without a future.”

Also trying to convince a Republican who has gone from supporting the DREAM Act to taking a stand against it, Noemi Degante in Arizona was arrested and charged with ‘unlawful conduct and demonstrating in a building in the Capitol complex’ after staging a sit-in outside Sen. Jon McCain’s office on November 17th. She, and five other “dreamers” had waited all day to see him, only to be denied a conversation with him he was finally spotted. When they told him that they wanted a chance to serve the country the same way that he did, he replied, “Good, go serve.” Noemi returned to waiting after that, and was arrested when she refused to leave after the office closed.

Frank Sharry, who is the Executive Director of the advocacy organization, America’s Voice, hosted a press conference on the DREAM Act on November 18th at which he stated that the majority of the lobbying efforts are currently being directed at the Republican Senators who have voted for previous versions of the DREAM Act in the past and have since reversed their positions. As the Senate vote on the DREAM Act approaches, it is imperative that Congress men and women are made aware that beyond the political realm, this bill would have a tremendous impact on the on the well-being of countless families, and on the future of this country, it’s youth and it’s economy. The national DREAM Act campaign, United we DREAM, has designated November 29th and 30th as National Dream Days of Action. So as you sit down to give thanks and enjoy your family this Thanksgiving, make sure you think of all the families that have been separated and all the young people that need the chance to dream. Pick up the phone and call your Senators to demand the DREAM Act. Happy Thanksgiving!

Watch these young dreamers and be inspired!

Learn. Share, Act. Go to restorefairness.org

 

 

 

 

Weekly Audit: Millions of Americans Could Lose Unemployment Benefits

Editor’s Note: Happy Thanksgiving from the Media Consortium! This week, we aren’t stopping The Audit, The Pulse, The Diaspora, or The Mulch, but we are taking a bit of a break. Expect shorter blog posts, and The Diaspora and The Mulch will be posted on Wednesday afternoon, instead of their usual Thursday and Friday postings. We’ll return to our normal schedule next week.

by Lindsay Beyerstein, Media Consortium blogger

According to official statistics, nearly 15 million Americans are unemployed. Between 2 and 4 million of them are expected to exhaust their state unemployment insurance benefits between now and May. Historically, during times of high unemployment, Congress provides extra cash to extend the benefits. Congress has never failed to do so when unemployment is above 7.2%. Today’s unemployment rate is above 9% and the lame duck session of Congress has so far failed to extend the benefits.

Congress has until November 30 to renew two federal programs to extend unemployment benefits, as David Moberg reports for Working In These Times. Last week, a bill to extend benefits for an additional three months failed to garner the two-thirds majority it needed to pass in the House. The House will probably take up the issue again this session, possibly for a one-year extension, but as Moberg notes, it’s unclear how the bill will fare in the Senate. The implications are dire, as Moberg notes:

The result? Not just huge personal and familial hardships that scars the lives of young and old both economically and psychologically for years to come.  But failure to renew extended benefits would also slow the recovery, raise unemployment, and deepen the fiscal crises of state and federal governments.

But wait! There’s more:

  • The Paycheck Fairness Act died in the Senate last week, as Denise DiStephan reports in The Nation. The bill would have updated the 1963 Equal Pay Act to close loopholes and protect employees against employer retaliation for discussing wages. All Republican senators and Nebraska Democrat Ben Nelson voted not to bring the bill to the floor, killing the legislation for this session of Congress. The House already passed its version of the bill in 2009 and President Barack Obama had pledged to sign it.
  • Economist Dean Baker talks with Laura Flanders of GritTV about quantitative easing (a.k.a. the Fed printing more money) and the draft proposal from the co-chairs of the deficit commission. Baker argues that we’re facing an unemployment crisis, not a deficit crisis.
  • Charles Ferguson’s documentary “Inside Job” is a must-see, according to Matthew Rothschild of The Progressive. An examination of how Wall Street devastated the U.S. economy, the film details the reckless speculation in housing derivatives, enabled by crooked credit rating schemes, that brought the entire financial system to the brink of collapse. The film is narrated by Brad Pitt and features appearances by former Governor and anti-Wall Street corruption crusader Eliot Spitzer, financier George Soros, and Prof. Nouriel Roubini, the New York University economist who predicted the collapse of the housing bubble.

This post features links to the best independent, progressive reporting about the economy by members of The Media Consortium. It is free to reprint. Visit the Audit for a complete list of articles on economic issues, or follow us on Twitter. And for the best progressive reporting on critical economy, environment, health care and immigration issues, check out The Mulch, The Pulse and The Diaspora. This is a project of The Media Consortium, a network of leading independent media outlets.

 

 

Weekly Audit: Millions of Americans Could Lose Unemployment Benefits

Editor’s Note: Happy Thanksgiving from the Media Consortium! This week, we aren’t stopping The Audit, The Pulse, The Diaspora, or The Mulch, but we are taking a bit of a break. Expect shorter blog posts, and The Diaspora and The Mulch will be posted on Wednesday afternoon, instead of their usual Thursday and Friday postings. We’ll return to our normal schedule next week.

by Lindsay Beyerstein, Media Consortium blogger

According to official statistics, nearly 15 million Americans are unemployed. Between 2 and 4 million of them are expected to exhaust their state unemployment insurance benefits between now and May. Historically, during times of high unemployment, Congress provides extra cash to extend the benefits. Congress has never failed to do so when unemployment is above 7.2%. Today’s unemployment rate is above 9% and the lame duck session of Congress has so far failed to extend the benefits.

Congress has until November 30 to renew two federal programs to extend unemployment benefits, as David Moberg reports for Working In These Times. Last week, a bill to extend benefits for an additional three months failed to garner the two-thirds majority it needed to pass in the House. The House will probably take up the issue again this session, possibly for a one-year extension, but as Moberg notes, it’s unclear how the bill will fare in the Senate. The implications are dire, as Moberg notes:

The result? Not just huge personal and familial hardships that scars the lives of young and old both economically and psychologically for years to come.  But failure to renew extended benefits would also slow the recovery, raise unemployment, and deepen the fiscal crises of state and federal governments.

But wait! There’s more:

  • The Paycheck Fairness Act died in the Senate last week, as Denise DiStephan reports in The Nation. The bill would have updated the 1963 Equal Pay Act to close loopholes and protect employees against employer retaliation for discussing wages. All Republican senators and Nebraska Democrat Ben Nelson voted not to bring the bill to the floor, killing the legislation for this session of Congress. The House already passed its version of the bill in 2009 and President Barack Obama had pledged to sign it.
  • Economist Dean Baker talks with Laura Flanders of GritTV about quantitative easing (a.k.a. the Fed printing more money) and the draft proposal from the co-chairs of the deficit commission. Baker argues that we’re facing an unemployment crisis, not a deficit crisis.
  • Charles Ferguson’s documentary “Inside Job” is a must-see, according to Matthew Rothschild of The Progressive. An examination of how Wall Street devastated the U.S. economy, the film details the reckless speculation in housing derivatives, enabled by crooked credit rating schemes, that brought the entire financial system to the brink of collapse. The film is narrated by Brad Pitt and features appearances by former Governor and anti-Wall Street corruption crusader Eliot Spitzer, financier George Soros, and Prof. Nouriel Roubini, the New York University economist who predicted the collapse of the housing bubble.

This post features links to the best independent, progressive reporting about the economy by members of The Media Consortium. It is free to reprint. Visit the Audit for a complete list of articles on economic issues, or follow us on Twitter. And for the best progressive reporting on critical economy, environment, health care and immigration issues, check out The Mulch, The Pulse and The Diaspora. This is a project of The Media Consortium, a network of leading independent media outlets.

 

 

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